Rupee rises 4 paise to close at 82.43 against US dollar

The rupee gained 4 pounds to settle at 82.43 (temporary) against the US dollar on Monday, supported by a decline in crude oil prices and a positive trend in local stocks.

In the interbank foreign exchange market, the local unit opened at 82.45 against the US dollar and settled at 82.43 (temporary), up 4 pounds from its previous close.

During the day, the local unit witnessed an intraday high of 82.40 and a low of 82.48.

On Friday, the rupee closed at 82.47 against the greenback.

Also read: India and UAE central banks’ discussions on rupee and dirham trade are progressing very quickly: Piyush Goyal

The rupee traded flat to positive on Monday amid positive local markets and a weaker US dollar. Anuj Chowdhury, Research Analyst, Sharekhan of BNP Paribas, said weak crude oil prices also supported domestic unity.

However, FII’s outflows capped sharp gains.

Foreign Institutional Investors (FIIs) were net sellers in the capital market on Friday as they unloaded shares worth $308.97 crore, according to exchange data.

The US dollar fell amid growing expectations of a halt to rate hikes at the June Federal Open Market Committee meeting. This also generated positive sentiment in the global markets.

The dollar index fell 0.26 percent to 103.28 points.

Meanwhile, Brent crude futures fell 2.31% to $73.06 a barrel.

Also read: As rupee reserves grow, Russia may have to invest more in India

“We expect the rupee to trade with a slight positive bias on risk sentiment in global markets and a weak US dollar. The sharp drop in crude oil prices may also support the local currency,” Chowdhury said.

Chowdhury further noted that traders remained cautious ahead of the release of domestic CPI inflation and Industrial Production (IIP) numbers.

Chowdary noted, “While CPI is expected to decline compared to the previous month, III is expected to be better than the previous reading. Market participants may also remain cautious ahead of US inflation data and the results of the FOMC meeting at the time. later this week.”

On the domestic stock market front, BSE Sensex leads by 99.08 points Or 0.16 percent, to close at 62,724.71 points, and NSE Nifty shares rose 38.10 points, or 0.21 percent, to 18,601.50 points.